6 Oct 2010
A tricky question that many homeowners face at one point or another is whether or not they should buy a new property before selling their existing one, or sell first and buy later.
A lot of the time it makes more sense to sell your original property before buying a new one. When you sell first you know exactly how much money you have to budget for in your next purchase and you have the luxury of taking your time and holding out for the offer you want.
The biggest drawback with selling first however is the issue of what to do when you don’t find a new home before your current one settles.
There is the option of getting an extended settlement period (if the buyer agrees) otherwise you may find yourself having to look for short term accommodation.
But what do you do if you have already bought your new home and still haven’t sold your current one?
When buying first there is always the risk that you will feel pressured into accepting a lower offer on your house due to the need to move on quickly.
If you can though try and make your sale contract conditional upon the sale of your existing property or if possible consider a bridging loan to help you finance two properties at the same time. This way you may feel less pressure to sell quickly.
Whether you decide to buy or sell first though it is all about timing. A good real estate agent will be able to listen to your circumstances and offer you recommendations no matter your situation.
If you feel you need some advice then please leave me a comment and I will get in touch with you.